I.I.T. Tax Rate
Comprehensive income tax rates
For residents, calculation of IIT on annual comprehensive income is based on progressive tax rates (see Table I below) using the following formula:
(Annual taxable income x Tax rate) – Quick deduction
|Annual taxable income (CNY*) (1)||Tax rate (%)||Quick deduction (CNY)|
|0 to 36,000||3||0|
|Over 36,000 to 144,000||10||2,520|
|Over 144,000 to 300,000||20||16,920|
|Over 300,000 to 420,000||25||31,920|
|Over 420,000 to 660,000||30||52,920|
|Over 660,000 to 960,000||35||85,920|
Annual taxable income after deducting the standard basic deduction, specific deductions, specific additional deductions, and other allowable deductions (see the Deductions section as following).
For non-residents, IIT on employment income, remuneration for labour services, author’s remuneration, and royalties is calculated by each category on a monthly or transaction basis at the below progressive tax rates (see Table II below).
|Monthly taxable income (CNY)||Tax rate (%)||Quick deduction (CNY)|
|0 to 3,000||3||0|
|Over 3,000 to 12,000||10||210|
|Over 12,000 to 25,000||20||1,410|
|Over 25,000 to 35,000||25||2,660|
|Over 35,000 to 55,000||30||4,410|
|Over 55,000 to 80,000||35||7,160|
Standard basic deduction
As of 1 January 2019, the amount of the standard basic deduction is CNY 60,000 per annum (i.e. CNY 5,000 for monthly tax withholding purpose).
Chinese social security contributions made in accordance with the Social Security Law and contributions made to the statutory Housing Fund are deductible for IIT purpose.
Specific additional deductions
Residents deriving comprehensive income, if eligible, can claim the following specific additional deductions when calculating the annual taxable income:
|Deductible item||Deductible amount (CNY)|
|Child education||1,000 per child per month|
|Continued education||400 per month or 3,600 per year depending on the type of qualified continued education|
|Mortgage interest||1,000 per month|
|Rental expense||800/1,000/1,500 per month depending on the location|
|Elderly care||Up to 2,000 per month depending on the status of the taxpayer|
|Major medical expense||Qualified self-paid portion above 15,000 and capped at 80,000 per year for each eligible individual|